Riyadh – Mubasher: Saudi Vice Minister for Mining Affairs, Khalid Al Mudaifer, said the three trends driving the mining sector across the globe include increasing demand for minerals and metals required for the energy transition.
He added that the other two trends would be the sustainability impact on mineral and mining markets as well as increased competition between countries aspiring leadership roles in the mining industry, according to a press release on Wednesday.
Al Mudaifer addressed the audience attending the 11th FT Commodities Global Summit, during which he said: “Our collective green future will be mineral-intensive, and the global pursuit of an energy transition is triggering high demand for critical minerals, estimated to be 40-fold current levels. This is creating price volatility and high prices.”
The top official pinpointed the vital role Saudi Arabia intends to play to fuel the green transition amid the emergence of a new super-mining region.
Al Mudaifer noted: “Sustainability is impacting both global supply and demand, which means it is not just about compliance anymore. Sustainability offers new business opportunities, while also posing new business challenges.”
He added: “Competition is increasing between countries for leadership positions in global mining markets, while at the same time, geographical concentration of some minerals and resource nationalism has led to a push to diversify supply chains.”
Saudi Arabia’s mining strategy has been developed as a result of Vision 2030, leading to main improvements and progress in available data regarding the Kingdom’s estimated $1.3 trillion mineral endowment. This is in addition to legal and regulatory infrastructure.
Applying such reforms to the mining sector in Saudi Arabia has resulted in sustainable growth while achieving the highest revenues of more than SAR 727 million ($194 million) in 2021. This marked a 27% surge compared to 2020.
Al Mudaifer added: “To meet future demand, the world needs more resilient mineral supply chains from diverse sources, and these supply chains must be more responsible and more equitable. Saudi Arabia has a central role to play in developing the emerging super-region from Africa to Asia.”
